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NewsApril 4, 2003

JEFFERSON CITY, Mo. -- Legislation capping property tax increases for older Missourians cleared the House on Thursday and went to the Senate. The bill, passed on a 108-28 House vote, also makes a key revision in the state's SenioRx Program, which helps some Missourians 65 and older pay for prescription drugs. The change is intended to attract more companies that make generic drugs to the program...

The Associated Press

JEFFERSON CITY, Mo. -- Legislation capping property tax increases for older Missourians cleared the House on Thursday and went to the Senate.

The bill, passed on a 108-28 House vote, also makes a key revision in the state's SenioRx Program, which helps some Missourians 65 and older pay for prescription drugs. The change is intended to attract more companies that make generic drugs to the program.

Legislators have made several efforts in recent years to give older Missourians some protection from property tax increases, which Rep. Jim Lembke said have been averaging about 7 percent statewide in each two-year assessment cycle.

Under the bill approved Thursday, increases in the assessed value of homes owned by people 65 and older would be capped at 5 percent per two-year cycle.

For anyone 65 or older who was totally disabled or cared for a totally disabled person of any age in the home, the property tax would be frozen.

Anyone seeking the tax cap would be charged a $15 enrollment fee, which would help offset the loss of revenue to the taxing district. The Legislature would have to appropriate money to cover the balance of the lost revenue.

Lembke, R-St. Louis, was among several sponsors of what he termed a "senior relief package."

"It doesn't give them the relief that they need, but it certainly gives them some relief," he said.

While the bill received strong support from Republicans and Democrats alike, several members questioned the possible fallout.

House Minority Leader Mark Abel, D-Festus, voted for the bill but suggested that providing age-based tax relief could be challenged on constitutional grounds as discriminatory.

Rep. Maynard Wallace, R-Thornfield, voted against the measure out of concern that school districts would lose needed revenue.

Wallace, a freshman legislator, is a former school principal and superintendent. While he will soon turn 65 and also represents many retirees, he said he could not support a bill that might imperil school funding at a time when state aid is already tight.

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"I cannot see how it's not going to cut funding at the local level -- if not now, eventually," he said. "When we're spending less state money, I don't want to, at the same time, limit what they can do."

Wallace and others said they were not comforted by the provision for the state to make up lost revenue to school districts and other taxing subdivisions.

"Where's that money coming from?" asked Rep. Denny Merideth, D-Caruthersville. "For savings to occur, there has to be a cost. From all rural counties and counties like mine, it's not going to save seniors a dime."

The bill also addresses the SenioRx program, which pays part of the prescription drug costs for senior citizens too wealthy to qualify for Medicaid but too poor to afford private prescription coverage. Drug companies pay the state a 15 percent rebate for the right to sell their products through SenioRx.

Some manufacturers of cheaper generic drugs have declined to participate in SenioRx or said they would quit the program because they could not afford the 15 percent rebate.

The bill would lower the rebate rate to 11 percent for generic drug makers, while keeping it at 15 percent for makers of brand-name drugs.

Rep. Bob Johnson opposed the change, saying there was no need to give generic drug makers special treatment.

"I know I've heard this threat that they're going to pull out of this program," said Johnson, R-Lee's Summit. "They have dictated to the state what they're going to do for our people. And we have lost sight of who's setting policy in this state."

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Elderly assistance bill is HB517.

On the Net:

Missouri Legislature: http://www.moga.state.mo.us

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